AB Foods Considers Splitting Primark and Food Businesses to Unlock Value

British retailer and food group Associated British Foods (AB Foods) is reviewing whether to separate its affordable-fashion chain Primark from its food business. The move comes after a full-year profit drop of about 13 % due to weak performance in its sugar division. 

In its results year ending 13 September, AB Foods reported revenue of £19.46 billion—down around 3 %—and adjusted operating profit of £1.734 billion. While Primark’s retail arm posted a modest 2 % profit gain, the food- and sugar-based businesses struggled.  

Analysts believe separation could highlight each business’s value more clearly. Primark makes up about 65 % of the group’s operating profit, which would independently value the chain at roughly £10.6 billion. 

AB Foods says it remains confident in its long-term outlook for both divisions but warns that consumer spending will stay challenging. The company expects growth in 2026, though much depends on the marketplace. 

In short: AB Foods is exploring a major structural decision — splitting its high-street fashion arm from its food business. The evaluation could reshape the group’s future and unlock fresh value for investors.